Consider year 7 of a utility company's financial results. The company pays income tax of \(\$ 7,112,000\), where the tax rate is 40 percent. Debt is \(\$ 100,000,000\) and the interest rate on debt is 9 percent. Depreciation for financial accounting purposes using straight-line depreciation is \(\$ 10,000,000\) per year. Depreciation for tax purposes on an initial investment of \(\$ 250,000,000\) is MACRS(20), or 4.888 percent. Total cost before income taxes is \(\$ 52,000,000\).

a. How much money is paid to interest on debt?

b. What is the financial depreciation charge?

c. What is the tax depreciation charge?

d. What is the annual expense?

e. What is the amount of the return to owners?

f. What are the total revenue requirements for this year?